Man on the move - Phil Spencer

Having recently returned from Australia and now dashing around the country making a new series of Location, Location, Location for Channel 4, Phil Spencer is a hard man to track down. Lynda Clark, however, managed to catch up with him and talk to him about his latest ventures and the property market

Having met Phil Spencer several times before, I am full of admiration for the way he constantly has his 'eye on the ball'. But probably more than anything else, I am in awe of the way he must pack his suitcase! He is a man who is constantly travelling from one place to another, yet alone one country to another, and how he manages to fit everything in and remember to pack his toothbrush is quite astounding. Phil is currently filming a new series of Location, Location, Location with his longstanding TV partner Kirstie Allsopp, and he has recently returned from an extended trip to Australia making another series of Phil Down Under. On his way back to the UK he stopped off to continue his latest venture with Kirstie, a new travel show that's soon to hit our screens called Vacation, Vacation, Vacation. Oh yes, and he has also managed to squeeze writing a book for first time buyers into his schedule as well. Out of breath? Well, I certainly am! His work on Location, Location, Location is not always easy, especially taking into consideration today's difficult housing market. He and Kirstie search for the perfect home for sometimes very difficult buyers, and so he has to be totally on top of pretty much every situation and have a knowledge worthy of any encyclopedia on the housing industry.

Phil originally wanted to be a professional cricketer or go into the Army. Though hardly related, both of these careers definitely had their plus points, but he ended up working in an estate agency, which resulted in his total passion for property. "My father dabbled in the property market," he says, "but it wasn't until I was older that I became really interested in the industry and managed to get a job in an estate agent's in the early 90s, but unfortunately I never sold a thing!"

Phil never felt comfortable with the traditional method of buying and selling houses; there were few regulations in those days, and the whole system was heavily biased towards the seller. He continues: "To my mind, it's a massive purchase for the buyer, and yet there was no one they could turn to for help or advice. So I decided to train as a surveyor and get some proper qualifications." After qualifying in 2006, Phil started one of the country's first buyers' agencies, Garrington Home Finders, and based the new business on putting the buyer first. A couple of years later he got a call from Channel 4, who believed property was going to be the next big hit on TV and wanted to make a thrills and spills show about people house hunting. They wanted his advice about what they might be faced with while making the show, and much to his surprise he ended up fronting it. Ten years on, he still enjoys doing so.

About 15 years ago Phil decided to take his first step on the property ladder, but it was slightly unusual. "It was a pretty strange situation but was totally financially motivated as I knew my first step was not going to be my forever home," he says. "A friend of mine had a very large lateral conversion flat in Battersea. The property had four bedrooms and three or four reception rooms on two floors but with no garden. It was all pretty tatty, though, and he rented it out. His mortgage was around £160,000 and he was struggling, but it wasn't a particularly good time to sell. I could see the potential, and so I made him an offer. I proposed that he got rid of the tenants, and we drew up a legal contract between the two of us - I would pay him rent while converting the house into two flats. I got planning permission, carried out all the building works, and six months later we sold one of the flats for £165,000. He was paid off and happy, and I got to keep the other flat. I lived there for five years and eventually sold it for £385,000. Although it was my first time buy, it allowed me to take two or three steps up the housing ladder in one go. It was a fantastic opportunity, and I learnt a huge amount along the way. Although I've developed quite a number of properties since then, that first one was the best deal I'll ever do.

Phil is certainly an expert in the property market and after so many years experience his thoughts on the future are spot-on. "If you look at the population numbers in relation to the number of houses, there is still a house shortage. Today people are living longer, leaving home earlier, marrying later and divorcing more often, and we are not building enough houses to accommodate this. Market forces dictate prices. At the end of the day it's a question of supply versus demand. If we put all the different scenarios into a melting pot, it says to me that in the long term house prices can only rise. For first time buyers the market is tough; borrowing money is a big problem, and it is extremely difficult to get enough of a deposit together today. My advice is that there is no urgency, but all the time you are renting you are actually paying someone else's mortgage off. The next Budget will be interesting because the previous government provided lots of schemes for shared ownership and HomeBuy Direct, which really helped first timers. It's now up for review, but I do believe the government appreciates that first time buyers are vital to the rest of the market. There are currently many cuts and savings being made, but I have a feeling that they know that the housing market is vital to the country's economic growth."
Phil has recently been helping house hunters over in Australia, so has seen a different aspect of the world's housing market, but it's the UK property situation tat he knows best. "The property market is very regional at the moment, with the top end in good health, but other sectors and regions are pretty slow. There isn't a huge amount of confidence out there. So many people tell me they're 'waiting' - but nobody ever seems to know quite what it is they're actually waiting for! We really need more confidence in the state of the economy for the market to stabilise. I do think that long term the market is flat and there is difficulty in selling and buying, and therefore chains are hard to put together because of the financial situation. It's a tough one, but I'm sure it will all pan out. There have been recessions before, and the country has got back on its feet. There are still many incentives out there for first time buyers. Often people have to move away from the area they live in and from family and friends and also make sacrifices. One word of caution on these schemes and incentives is to make sure you thoroughly read the small print and fully understand what you may be getting into."

Phil lives in Wandsworth in south London with his wife and two young sons and believes that location is paramount when it comes to buying a home. "I was very particular about the area I wanted to live in and even which side of the road I wanted to be on. I didn't want to buy something that wouldn't last as you should consider it your home where you can plan your future. I would advise anyone buying a home to search for the location they really want and feel happy with. It may take a while, but I'm sure it will pay off in the end. Moving is a very expensive exercise and should be done as little as possible. I would also say to look out for other opportunities like refurbishment or extending a property as this is a definite way to add value to the home. The market isn't likely to help you move home in the next few years. If you want to generate equity, you're going to have to look to create it yourself. But having said that, a home should be for enjoying and living in and not just regarded as a money-making machine."

Workwise Phil is extremely busy. The new series of Location, Location, Location is scheduled to be shown on Channel 4 later this year. Phil says: "We had our 10-year anniversary in January, which was pretty amazing as it's gone so fast, but I've had a fabulous time. There is also another series of Relocation, Relocation on TV at the moment as well as Phil Down Under. This show is about helping British families move to Australia, so it's not just about moving house but about getting a job and settling into a brand-new lifestyle." Concerning his and Kirstie's new travel series, Vacation, Vacation, Vacation, which will be shown on Channel 4 at the end of March, Phil continues: "As much as we love our house hunting work, it's been fun to have a change from property, and we are both passionate about travelling to different parts of the world. There aren't many travel shows on the TV at the moment, so we're really hoping the series will generate lots of interest."

Phil has also found time to write a book called How To Buy Your First Home, which promises to be invaluable to first time buyers. And, not to appear to be techno dinosaurs, Phil and Kirstie have launched their own app for the iPhone, which will be available in May. "It's going to include everything you need to know about finding and buying a property with hints and tips as well as a first class search engine and should be invaluable to house hunters everywhere," says Phil. "We were very keen that it should be extremely user-friendly, and it's basically like having Kirstie and I in your pocket when you go to see estate agents, view a property or generally are out searching or negotiating for a home."
Phil has become a very well respected property expert and presenter and as a big fan, the idea of having a mini Phil in your pocket has to be something else - I think I might be first in the queue to get one and, oh yes, I want a lesson in how to pack a suitcase without taking everything but the kitchen sink!

How To Buy Your First Home, Vermilion, £9.99, is published 5 May 2011.
Vacation, Vacation, Vacation will be starting on Channel 4 from 30 March for eight weeks.
Relocation, Relocation is on Channel 4 on Thursdays at 8pm.

We really need more confidence in the state of the economy for the market to stabilise.